Friday, May 11, 2007

Abu Dhabi is currently doing well in the property sector, and the recent Cityscape exhibition has only added to this excitement. However, the truth is that these major construction activities taking place in Abu Dhabi currently, is not being considered as a major threat to its matured neighboring emirate, Dubai.

It is a different kind of market, and the motivating projects that are being carried out at Abu Dhabi will bring about a balance in the overall profile of UAE as a business, residential and holiday destination.

However, whether Dubai or Abu Dhabi is a better investment option, will depend on individual requirements of the buyer. The massive demand for commercial and residential property in Abu Dhabi is actually soaring up the prices. However, the major supplies currently reaching the Dubai market, and the progress of the emirate in offering world-class infrastructure, will actually lure investors to Dubai who intend to occupy their properties very shortly.

However, this major growth of Abu Dhabi is a real booster for the UAE economy. This is clearly indicated by the project values which has touched 170 percent increase last year in comparison to 2005. With several new projects coming up, this figure is expected to increase even further during the current year.

The population in Abu Dhabi will be doubled in ten years and about 2,50,000 housing units will be required. This bigger picture indicates long-term sustained growth of Abu Dhabi market.

This optimism in Abu Dhabi is the result of combined efforts of tourism, leasehold ownership, development of infrastructure and international airport expansion, which will help in maintaining the prominence of the capital in the real estate market.

4 comments:

currently abu dhabi - touching property in dubai right now is inviting trouble. abu dhabi on the other hand is on its way up. regardless, pay attention to fundamentals and as soon as a bubble starts forming in abu dhabi, sell off at a profit or you will end up with a mortgage much bigger than what your property is worth.

Abu Dhabi property market is still in it's infancy stages, merely because there are no formal property legislations, specific property courts/tribunals and regulatory authorities. Further, developers in Abu Dhabi initially were not classified as master or private, hence in disguise a lot of private developers benefited and players like Surouh and Al-Dar stood way behind in the que. Today with this meltdown Abu Dhabi becomes more riskier bet for every one - that be it, lenders or investors, considering approx 95% of properties are off-plan which means committment and no one has the patience or time to invest in a market where there is no transparency and clarity. I still feel Dubai remains value for money with strong delivery promise and sound infrastrucure.